Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Heckmann Looks Ahead to a New Future

On Wednesday, Heckmann (NASDAQOTH: NESC  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Heckmann has found a unique way to take advantage of the boom in oil and gas drilling in the U.S. over the past several years. Rather than producing energy itself, Heckmann specializes in environmental services to energy customers, particularly delivering water and necessary chemicals for hydraulic fracturing and handling waste disposal. Let's take an early look at what's been happening with Heckmann over the past quarter and what we're likely to see in its quarterly report.

Stats on Heckmann

Analyst EPS Estimate


Year-Ago EPS


Revenue Estimate

$166.88 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Heckmann bounce back this quarter?
Analysts have gotten gloomier about Heckmann's earnings prospects recently, reversing previous expectations for a profitable first quarter and slashing their full-year 2013 estimates by more than half. The stock's response has been somewhat more muted, but it's still down 4% since late January.

The biggest news of the quarter for Heckmann came in its fourth-quarter-earnings report in March, when the company announced its intent to change its name to Nuverra Energy Solutions. With the name change, founder Dick Heckmann and his management team hope to give customers and investors a better sense of what Heckmann does by unifying its multiple brands under one name. Another benefit will be that Nuverra will paint a more positive image against regulators trying to clamp down on fracking.

Yet longer-term, the advantage that Heckmann has comes from its operational success. Rival Crosstex Energy (NYSE: ENLK  ) and oil and gas producer SandRidge Energy (UNKNOWN: SD.DL  ) have taken a different tack with the problem of what to do with wastewater and other materials from drilling, building infrastructure designed solely to dispose of the liquids. Heckmann's emphasis on recycling, by contrast, requires far less water and helps its customers prove that they're more environmentally conscious of the impacts of their drilling activity.

Moreover, concerns that Heckmann's future is too tied to natural gas are largely exaggerated. With recent acquisitions, the company has broadened its reach into oil and gas-liquids development, capitalizing on the need for its services from all types of energy production.

In Heckmann's report, see if the company starts to look more seriously at international expansion. Given the huge rise in fracking around the world, Heckmann has huge potential if it can better leverage its expertise not just domestically but globally.

Can SandRidge's move to handle its own waste disposal pay off for the company? Find out more about the future of this emerging oil and gas junior and find out more about its strengths and weaknesses by checking out The Motley Fool's premium research report detailing SandRidge's game plan and what to expect from the company going forward. To get started, simply click here now!

Click here to add Heckmann to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2410063, ~/Articles/ArticleHandler.aspx, 9/25/2016 5:00:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 2:40 PM
NESC $0.21 Down +0.00 +0.00%
Nuverra Environmen… CAPS Rating: ***
ENLK $17.46 Down -0.32 -1.80%
EnLink Midstream CAPS Rating: **
SD.DL $0.00 Down +0.00 +0.00%
SandRidge Energy CAPS Rating: ***